3 Big Things Today, October 13, 2021
1. Soybean Futures Higher in Overnight Trading
Soybeans were higher in overnight trading following soybean oil higher and as investors digest yesterday’s World Agricultural Supply and Demand Estimates (WASDE) report from the U.S. Department of Agriculture.
Soybean oil futures surged overnight as palm oil prices in Asia jump. The oils compete on the global stage so rising palm prices tend to buoy soybean oil. Palm oil prices jumped after India cut its import tax on edible oils to zero, boosting expectations for global demand.
Investors also are looking at yesterday’s WASDE report.
Soybean production in the 2021-2022 marketing year that started on Sept. 1 is pegged at 4.448 billion bushels, the USDA said in its monthly report.
That’s up from the September projection for 4.374 billion bushels and just ahead of the 4.415 billion projected by analysts polled by Reuters.
Stockpiles are seen at 320 million bushels, up from the prior month’s outlook for 185 million and above analysts’ expectations for 300 million bushels.
Corn production in the 2021-2022 marketing year was pegged at 15.019 billion bushels by the USDA, up from last month’s forecast for 14.996 billion bushels. Analysts were expecting output of 14.973 billion bushels.
Inventories of the grain are pegged at 1.5 billion bushels, up from the September forecast for 1.408 billion bushels and above expectations for 1.432 billion bushels.
Wheat stockpiles at the end of the grain’s marketing year on May 31 are seen at 580 million bushels, down from the previous month’s outlook for 615 million bushels. Analysts polled by Reuters were expecting inventories of 576 million bushels.
Soybean futures for November delivery were up 7¾¢ to $12.06 a bushel overnight on the Chicago Board of Trade. Soymeal dropped $1.90 to $311.10 a short ton, while soy oil jumped 1.61¢ to 60.46¢ a pound.
Corn futures for December delivery lost 2¢ to $5.20½ a bushel.
Wheat futures for December delivery were unchanged at $7.34 a bushel, while Kansas City futures declined 3¢ to $7.36¾ a bushel.**
2. Weekly Corn and Wheat Export Inspections Decline
Inspections of corn and wheat fell week-to-week while soybean assessments improved, according to the USDA.
Corn inspections in the seven days that ended on Oct. 7 totaled 746,200 metric tons, down from 870,085 tons a week earlier, the agency said in a report.
That’s well below the 2.94 million metric tons assessed during the same week a year earlier.
Examinations of wheat for overseas delivery dropped to 435,173 metric tons last week, down from 615,213 tons a week earlier, the government said.
The total also was down from the 514,673 tons assessed in the same week last year.
Soybean inspections, meanwhile, jumped to 1.61 million metric tons, the USDA said. That’s up from 844,610 tons assessed the previous week but well below the 2.47 million metric tons examined a year earlier.
Since the start of the marketing year on Sept. 1, the government has inspected 3.44 million metric tons of soybeans for offshore delivery. That compares with 9.56 million tons during the same time frame a year earlier, the report said.
Corn inspections since the beginning of September now stand at 2.94 million metric tons, below the 4.58 million tons assessed during the same period in 2020.
Wheat assessments since the start of the grain’s marketing year on June 1 are now at 9.18 million metric tons. That’s down from 10.4 million tons inspected during the same time frame last year, the USDA said in its report.
3. Northern Plains Facing Blizzard, Frost Advisory Issued in Nebraska
Weather maps are lit up this morning as winter storm warnings have been issued in parts of the northern Plains, frost advisories are in effect in areas of Kansas and Nebraska, and strong storms are moving through Texas into Oklahoma.
In eastern Montana and the western Dakotas, a winter storm warning has been issued and will remain in effect until 9 p.m. local time, according to the National Weather Service.
Between 5 and 9 inches of snow are expected in the southwestern corner of North Dakota, the NWS said in a report early this morning.
Blowing snow could reduce visibility as near-blizzard conditions hit the area, the agency said. Travel will be difficult as roads are forecast to be packed with snow.
A frost advisory has been issued for parts of northern Kansas and east-central Nebraska as temperatures dip overnight into Thursday, the NWS said. Temperatures will fall as low as 33°F. tonight.
Farther south, a line of storms is moving through eastern Oklahoma into northwestern Arkansas this morning, bringing wind gusts of up to 50 mph and locally heavy rainfall, the agency said.